Country Garden Holdings Company (2007) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 fell 54.9% year-over-year to RMB102.1 billion, mainly due to a sharp decline in property sales and deliveries amid sluggish market conditions.

• Loss attributable to owners narrowed to RMB12.8 billion from RMB48.9 billion in H1 2023, reflecting lower impairment charges but continued operational challenges.

• Over 150,000 housing units were delivered in H1 2024, covering 178 cities in 29 provinces, maintaining industry leadership in delivery.

• The company is actively pursuing debt restructuring, liquidity management, and prioritizing project delivery and operational stability.

Financial highlights

• Revenue: RMB102.1 billion, down 54.9% year-over-year.

• Gross loss: RMB1.7 billion (vs. RMB24.3 billion loss in H1 2023).

• Net loss attributable to owners: RMB12.8 billion (vs. RMB48.9 billion loss in H1 2023).

• Contracted sales attributable to shareholders: RMB26.0 billion, with 2.65 million sq.m. GFA.

• Total cash at 30 June 2024: RMB44.8 billion, down from RMB63.8 billion at end-2023.

Outlook and guidance

• The company will focus on cash flow safety, revitalizing underperforming assets, and further cost controls.

• Strategic emphasis on smart construction solutions and expanding property development services for third parties.

• Ongoing efforts to resolve liquidity pressures and implement a holistic offshore debt restructuring plan.

• Management expects continued challenges in sales and liquidity but sees long-term potential in the property sector.